sap billing for postal services

SAP BRIM for Postal Industry Enabling Revenue Management Innovation

Executive Overview Presentation

© 2013 SAP AG. All rights reserved. 2

© 2013 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG.

The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or

warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group

products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing

herein should be construed as constituting an additional warranty.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in

Germany and other countries.

Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

http://www.sap.com/corporate-en/legal/copyright/index.epx




Market Drivers Solution Overview Scenarios Benefits

What are the Main

Challenges Influencing

Your Business?



18% Global decline in Mail revenue

since 2006 (source Ofcom, based on UPU

databse )

Deregulation, Liberalization, Globalization…

We cannot just sell stamps.

Lawmakers should grant this

agency greater flexibility to target

new revenue streams and also

control operating costs

Jack Potter, United States

Postmaster General

“”

REGULATION COMPLIANCE

CONCENTRATION

INTERNATIONALIZATION

DIGITAL COMPETITION



Innovation in Business Model … Driving Needs for

Advert. &

Media

Telecom

Traditional

Services

Courier Express Parcels and Logistics

Government

Services

Retail

Services

Finance

Services

E-Business

Services

E-post

Emerging

Services

E-Commerce

E-Finance

E-Government

77% of posts offer

online postal services

55 distinct electronic

services identified over the

last 20 years

http://images.google.it/imgres?imgurl=http://academic.brooklyn.cuny.edu/modlang/carasi/workshops/ramapo/images/nq/passaporto.gif&imgrefurl=http://academic.brooklyn.cuny.edu/modlang/carasi/workshops/ramapo/images/nq/nq.html&h=313&w=218&sz=54&hl=it&start=2&usg=__bhBAwc_AHoy6EN0r7wW6FtMdYn4=&tbnid=LYtPzImSXnu0rM:&tbnh=117&tbnw=81&prev=/images?q=passaporto&gbv=2&hl=it&sa=G



80%+ Of cost for maintaining status quo

Drive Down Operational Costs …

Poste Italiane has tremendously

changed towards a multi-services

company during the last decade.

Our ICT systems had to cope with

this rapid change

Stephano Sappino, Poste

Italiane

HETEROGENEOUS IT LANDSCAPE

HOMEGROWN

DECENTRALIZED SYSTEMS

HIGH QUALITY OF SERVICE

“”



… Driving Needs for Streamlining the IT Process

Lack of integrated

solutions lead to a non

sustainable cost structure,

where 80%+ of IT is spent

on maintaining status quo



1,0 B Facebook users

Empowered Customers are Changing the Rules

HYPER, DIGITALLY CONNECTED

SOCIALLY NETWORKED

BETTER INFORMED

EXPECT IMMEDIATE, PERSONALIZED RESPONSE

The digital natives are

increasingly influencing

business models,

communication channels and

the SLAs of postal services”

Stephano Sappino, Poste

Italiane

“”



…Driving Needs for Addressing Segment of One

Web & Kiosk Postal Offices Contact Center Sales Force Social Network Mobile

Human Interaction Digital Interaction

Simplify Business Interactions while Meeting Real Time Expectations

Real Time

Insight for True

customer 360°

view

Real Time Interactions

for quoting & 1:1

customer engagement

Real Time Execution

for context sensitive

offerings



Closed Loop between

Business Need and IT

Constraints



From Business Challenges To Technical Needs

Innovative Pricing & Bundles

Commission Partners

Pricing,

Rating &

Charging

Collect

&Pay

Bill &

Invoice &

Settle

Customer

& Partner

Financial

Care

Analytics

Consume to Cash Analytics

Consolidate Billings

Manage Efficiently

Credit & Collection

Customize Invoices

Analyze Customer

Usage

Convergent

Mediation



From Business Process to Features

Price, Rate & Charge

Collect &Pay Bill &

Invoice & Settle

Customer & Partner Financial

Care Analytics

Deliver Service

Contract capturing

Offer & Contract

Mgmt.

CRM

Convergent

Charging

Convergent

Invoicing

Receivables

Management

& Payment

Handling

Credit &

Collections

Management

Financial Customer

Care & Dispute

Management

SAP CC SAP ERP (FI-CAx based)

SAP CRM

Mail delivery,

Logistic Execution,

Event Mgt. /

Mediation

SAP CRM

Order Management,

Contact Center,

Marketing

SAP SCEM

Operational

Platform Consume To Cash Analytics

RDS CUA

RDS

Customer

Usage

Analytics

O2C

Pro

cess

SA

P B

RIM

F

eatu

res

SAP Mediation

SAP TM

The Order To Cash Business Process for Posts

Billing & Revenue Innovation Management Solution supporting O2C Process

The Corresponding Features



SAP Solutions for O2C link process across departments

Convergent

Charging

Convergent

Invoicing

Receivables

Management

& Payment

Handling

Credit &

Collections

Management

Financial Customer

Care & Dispute

Management

Order Management,

Contact Center,

Marketing

SAP CC SAP CI SAP CFM SAP CRM

Strategy & Service

Marketing

& Call Center Pricing

Design

Offer

Design

Financial

Customer

Care

Dispute

Mgmt

Billing Operations Accounting Collections Customer Care

Sales Contract

Creation

Credit

Scoring

Finance Manage

Receivables

& Payables

Run

Collections

Book

Revenue &

Costs

Prepaid

Refill

Billing Price and

Rate Events

Manage

Subscription

Account

Manage

Billing

Account

Invoicing &

Payment

Statements

Mediate

Usage

Operations Deliver

Service



Awarded DigitalRoute is the 2011

Stratecast Global CSP Billing

Mediation Competitive

Strategy Innovation Award

Winner

SAP Convergent Mediation

Integrate new and old systems

more simpler

Collection of multiple data streams

Ensure data quality

Error detection, with de-duplication

Transform raw data in usable

information

Data enrichment in real time

Standardize Data format

across platforms

Translate protocols and formats to create

new unified data format



“” The flexibility and speed at

which we could create and

modify price plans was

second to none. It is so user

friendly that now even non-

technical financial managers

are able to introduce new

tariffs.

Raphaël Bichon, Project

Manager SFR

SAP Convergent Charging

Easy to Use

Visual design of your pricing and charging

models

Service-agnostic, proven

Rapid time to market

Support for multi-sided partner-centric

models

Support prepaid, postpaid and hybrid

charging

High Performance

Calculate prices and charges for hundreds of

thousands of transactions per second for

hundreds of millions of customers



Consolidate multiple upstream

systems for a single view of the

customer’s account

Flexible invoice aggregation & presentation

Configurable invoice discounting

Integrate seamlessly with accounts

receivable and payable for interest

calculation, adjustments, etc.

Handle both customer invoicing and

production of payment statements for

partners in a single solution

Scalable Solution

High volume capabilities

32% decrease in errors when

A/R and billing are

integrated so open items

are generated at the

same time as the bill

Source: SAP

Performance

Benchmarking

SAP Convergent Invoicing



74% Decrease in billing and

collections cost as

percentage of revenue

with optimized collections

and dispute handling

Source: SAP Performance

Benchmarking

SAP Customer Financial Management

Automation & Optimization

Automate routine tasks

Optimize efficient cash collection

through segmented strategies

Transparency On Revenue

Monitor an up-to-date picture of

customer payment behavior

Comply to accounting standards

Customer Satisfaction

Immediate access to customer

contracts & payment instruments &

accounts



SAP Convergent Charging and Invoicing scale massively

A series of benchmark tests were run in Q4 2011 in IBM Labs in Montpellier,

France, to measure the massive scalability of SAP Convergent Charging & SAP

Convergent Invoicing on IBM platforms.

773,000

2.8 B

events / sec

events / hour subscribers 200 M

Market Leading Results


100,000

1175

billable items

invoices/sec subscribers

50 M

SAP Convergent Invoicing



Rapid Deployment Solution for Billing with Best Practices

* Reduction assumes

100% fit to baseline

content scope.

Leveraging Pre-

configured

Baseline

Up to a possible 40% time and effort reduction

compared to a traditional project with same scope*

Blueprint - up to 50%, Savings

• Best Practice processes modeled

and described

Realization - up to 50%, Savings

• Best Practices processes already

configured and documented

• Delta implementation built on-top of

existing best practices

Testing- up to 30%, Savings

• Test Case Template supplied

0 10 20 30 40 50 60 70 80 90 100

Standard Prep Business Blueprint Realization Testing Go-live

Start Deploy Run



Efficient Revenue Management: increase customer

satisfaction and improve financial performance with a converged

view of customer accounts, receivables, payables and disputes.

Deployment Flexibility: deploy a complete, integrated

customer care and next gen billing system, or choose to deploy

in smaller implementable steps for targeted incremental value.

Don’t reinvent the Billing Wheel!

Business Agility: launch new pricing, charging and billing

models more flexible and faster: open up new revenue stream,

personalize your B2B offerings and get to know your customers 1

2

3

Summary



Explore Different

Scenarios



Multi-Sided Partner Settlement

28% decrease in IT expenditures

as a percentage of revenue

with a consolidated single

solution and platform

landscape


Benchmarking

Handle flexible partner contract terms

Use the same pricing engine to define these contracts

Interlink customer pricing with partner

revenue share

Better manage the profitability of your business models

Tailor your offers to partners

Allow special incentives to most valuable partners



B2B Billing: Delighting your Enterprise Customers

25% lower DSO when key metrics

can be analyzed across

customer, order, region, and

product line


Benchmarking

Tailor to each specific enterprise customer

Manage complex enterprise agreements

Customize offerings while retaining manageability of product

catalog

Define credit pooling across multiple enterprise employees, seats

and devices

Handle more dedicated billing capacities

Automate billing and discounting for SLAs and tiered plans

Customize invoicing breakdowns corresponding to customer

hierarchies

Converge all services onto a single bill



DPD Post Use Case

DPD is the international network and

world class brand of GeoPost Group, a

100% subsidiary of La Poste Group and

majority shareholder of DPD.

GeoPost, a B to B parcel specialist,

caters for more than 230 countries on

behalf of over 300,000 clients. Today,

the GeoPost Group boasts 1st rank

positioning in France and 3rd rank in

Europe with an annual turnover of

around 3.292 billion Euros in 2008.

Customer Business Issues solved

• Optimizing the billing process, reducing the number of systems

involved (45 systems)

• Cost reduction by automating processes ( redundant customer

data, partial manual handling)

• Introduce E-Billing

Why SAP BRIM - Benefits

• Major cost savings due to standardized, automated processes

• Convergent invoices and E-Billing have positive effect on

customer satisfaction

• Harmonized pricing

Solution

• SAP Convergent Invoicing

• SAP Customer Financial Management

At first, replacing DPD’s proprietary billing application with the SAP for Telecommunications solution portfolio seemed

to be an unusual move . On second thought, DPD realized how appropriate it was. Telecommunication companies use

the same basis for billing as DPD: services used. Suddenly, the switch seemed perfect, with SAP Consulting

customizing the industrial solution portfolio to the specific shipping needs of DP “”

0,25-0,5% Increase of revenue growth



HP Post Use Case

HP Produkcija is a new pay

TV provider owned by the

Croatian Post. Their new

service “EvoTV” is available

nationwide over digital

terrestrial broadcast entering

almost every home in Croatia.

Customer Business Issues solved

Implement innovative charging of digital TV

services fulfilling very complex charging and

discounting requirements

Why SAP BRIM - Benefits

One flexible convergent charging system which

simplifies overall IT architecture

Ability to implement any kind of new services which

requires customer charging without the need of

acquiring a new charging system

Ability to charge any kind of services (apart from

Telco/Media) through one unique charging system

which decreases overall total cost of ownership of

IT infrastructure

Solution


Being a start-up, time-to-market was one of our top priorities. Choosing SAP CC enabled us to issue first bills to

customers after only 3 months from project kick-off. Due to the ability to quickly change tariff plans even last minute

adjustments did not postpone our go-live plans “”



Faster Time To

Market For New

Area of Growth



BRIM Performance

KPI Industry Benchmark Improvement Potential

Time to implement new

pricing offers

Price/performance for

rating (TPS per CPU core)

Days sales outstanding

(DSO)

launch in hours

not weeks

150%

20%

1 day 90 days

30

days

470 5 400

2 140

0 90 days

54

days



© 2013 SAP AG. All rights reserved. 28 Internal

… unlocking new growth opportunities

and gaining market leadership by

inventing new business models and

opening new revenue streams

… increasing customer satisfaction by

reacting more quickly to customer

demand with immediate insight to action

… improving top-line effectiveness by

reducing cost of operations while

simplifying and speeding core business

process

imagine Let’s Work on Your Future Together

Thank you

Isabelle ROUSSIN

[email protected]

Head of Billing & Revenue Innovation Management

Postal, Transport, Logistics


© 2013 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG.

The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or

warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group

products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing

herein should be construed as constituting an additional warranty.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in

Germany and other countries.

Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.




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